Iowa Commerce's Insurance Division Dept.: Affordable Care Act Transitional Policies Extended Indefinitely

DES MOINES, Iowa, April 14 -- The Iowa Department of Commerce's Insurance Division issued the following news release on April 13, 2022:

Iowa Insurance Commissioner Doug Ommen today issued a bulletin providing guidance to Iowa consumers and insurers regarding the Centers for Medicare and Medicaid Services ("CMS") decision to allow transitional policies to be extended.

CMS announced on March 23, 2022, that health insurers will be allowed to continue transitional policies for policy years beginning after October 1, 2022, and will remain in effect until CMS announces that all such coverage must come into compliance with the specified requirements.

"I appreciate federal authorities listening to Iowa and providing flexibility to the Iowa Insurance Division to extend transitional policies indefinitely. Without this option, roughly 58,295 Iowans would be forced off their healthcare plans.

"These thousands of Iowans have renewed their transitional insurance plans that were originally purchased prior to 2014.

"Iowans should be assured that they have access to healthcare coverage that fits their needs and not be forced to purchase unaffordable coverage," Ommen said.

"Congress should amend the ACA to recognize this decision."

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To: All Health Insurers Writing Business in the State of Iowa

From: Doug Ommen, Iowa Insurance Commissioner

RE: CMS allows extension for transitional policies indefinitely

The purpose of Bulletin 22-01 is to provide guidance regarding the extension of transitional policies in the State of Iowa. The Centers for Medicare and Medicaid Services ("CMS") announced on March 23, 2022, that health insurers will be allowed to continue transitional policies for policy years beginning after October 1, 2022, and will remain in effect until CMS announces that all such coverage must come into compliance with the specified requirements./1

The Iowa Insurance Division ("IID") will enact the CMS guidance and will also allow transitional policies to remain in effect indefinitely. The IID appreciates federal authorities providing this state flexibility as they have done every year since 2014.

Transitional policies provide access to healthcare coverage that is likely otherwise unaffordable. Currently, 58,295 Iowans have transitional policies in the individual and group markets. Year after year, Iowans have had the opportunity to enroll in ACA plans but many choose to stay in transitional plans to avoid the very high ACA rates, especially those in the individual market.

The structural flaws within the text of federal law make ACA plans unappealing to many younger, healthier Iowans. Iowa intends to permit viable health insurance options for those who have been priced out of ACA plans and appreciates CMS listening to input from Iowa/2 to make the continuation of transitional plans available for the foreseeable future. Iowa, once again, calls on the federal government to permit additional flexibility to make changes that would make the ACA plans more attractive to younger, healthier Iowans.

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Footnotes:

1/ See: https://www.cms.gov/files/document/extension-limited-non-enforcement-policy-through-calendaryear-2023-and-later-benefit-years.pdf

2/ https://www.grassley.senate.gov/news/news-releases/grassley-ernst-press-cms-to-protect-high-qualityaffordable-health-insurance-for-65000-iowans